"The Commerce and Industry Ministry has sent the cabinet note on the matter and a decision is likely to be taken this month only," a government official said.

Besides, proposing 100 percent FDI through automatic route in the cash-starved railway sector, the Department of Industrial Policy and Promotion (DIPP) has also proposed to de-license and de-reserve few areas of the sector.

However, FDI will not be allowed in train operations and safety.

At present, there is a complete ban on any kind of FDI in the railways sector except mass rapid transport systems.

According to the proposal, foreign investment would also be allowed in sub-urban corridor, high speed train systems and dedicated freight line projects implemented in PPP mode, the official said.

It has also suggested widening the definition of 'infrastructure' by including railway line and railway sidings.

As per the proposal, foreign companies would be allowed to pick up 100 per cent stake in the special purpose vehicle (SPV) that will construct and maintain rail lines connecting ports, mines and industrial hubs with the existing rail network.

"It will be first-to-last mile connectivity between ports and things like coal mines to the existing railway freight stations," the official said.